Thousands protesting the expansion of a chemical plant continued their demonstration even after it was announced that the project had been dropped.

Photo: Ng Han Guan, Associated Press

Thousands protesting the expansion of a chemical plant continued...

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Chinese anti-riot police men gather outside the city government office in Zhejiang province's Ningbo city, where residents had gathered to protest the proposed expansion of a petrochemical factory Sunday, Oct. 28, 2012. Thousands of protesters marched through an eastern Chinese city on Sunday, shouting for fellow citizens to join them in demanding that the government halt the expansion of a petrochemical factory because of pollution fears. (AP Photo/Ng Han Guan)

Photo: Ng Han Guan, Associated Press

Chinese anti-riot police men gather outside the city government...

Image 3 of 3

Protesters hold up a defaced picture of the Ningbo city mayor Liu Qi outside the city government office in Zhejiang province's Ningbo city, Sunday, Oct. 28, 2012, where residents had gathered to protest the proposed expansion of a petrochemical factory. Thousands of protesters marched through an eastern Chinese city on Sunday, shouting for fellow citizens to join them in demanding that the government halt the expansion of a petrochemical factory because of pollution fears. (AP Photo/Ng Han Guan)

Ningbo, China -- After a weekend of protests by thousands of citizens over pollution fears, a local Chinese government relented Sunday and agreed that a petrochemical factory would not be expanded, only to see the protesters refuse to halt their demonstrations.

The standoff in the prosperous city of Ningbo has highlighted the deep mistrust between citizens and the government in China. Should they continue, the demonstrations would upset an atmosphere of calm that Chinese leaders want for a transfer of power in the Communist Party leadership that is expected next month.

The protest in the eastern city had swelled over the weekend and led to clashes with police. Ningbo city leaders said in a statement Sunday evening that they and the project's investor had "resolutely" agreed not to go ahead with the expansion. The factory is a subsidiary of Sinopec, one of the world's biggest petrochemical companies.

A city official tried to read the statement on a loudspeaker but was drowned out by shouts demanding that the mayor step down. On the third attempt, the crowd briefly cheered but then turned back to demanding that authorities release protesters who had been detained.

Liu Li, 24, a Ningbo resident, said the crowd did not believe the government's statement.

"There is very little public confidence in the government," she said. "Who knows if they are saying this just to make us leave and then keep on doing the project?"

Hundreds of people outside government offices refused to budge despite being urged to leave by officials. Riot police with helmets and shields came out of the government compound and pushed the crowd back. Some people, including families, ran away. Police dragged six men and one woman into the compound, beating and kicking at least three of them. Police also smashed placards and took away flags.

The demonstration in wealthy Zhejiang province is the latest this year over fears of health risks from industrial projects, as Chinese who have seen their living standards improve become more outspoken against environmentally risky projects in their areas.

"The government hides information from the people. They are only interested in scoring political points and making money," said one protester, Luo Luan. "They don't care about destroying the environment or damaging people's lives."